The Backups appear to be working, but I am seeing the following event log warnings in the Virtual Machines.
Event ID 157: Disk 1 has been surprise removed.
The Disk number varies depending on the number of actual disks.
Additionally on one of the VMs I get
Event ID 58: The disk signature of disk 1 is equal to the disk signature f disk 0.
During normal operation there is no disk 1. My google searches indicate it is a product of VSS.
OS is Server 2012 R2 Datacenter with VMs running 2012 R2 Standard.